MANILA – Metro Retail Stores Group, the Visayas’ homegrown shopping mall and department store operator, is looking to build a synergy between its physical stores and a future foray into e-commerce, its chairman and CEO said Tuesday.

Brick and mortar stores are still more profitable than online counterparts, and the company is planning to open 2 stores this year and 6 to 8 more in 2018, Frank Gaisano said in an exclusive interview with ANC’s The Boss.

Gaisano cited US e-commerce giant Amazon, which posts lower income compared to Walmart, even as its market capitalization is much larger. Amazon is also betting on physical retail with its acquisition of Whole Foods.
"It’s a good mix to have, online at the same time physical store. That’s what we are doing right now," he said.

"We’re still getting ready at this point. We’re not there yet," he said, when asked about the group’s e-commerce plans.

Metro Retail makes sure its stores are stocked based on the demands of the location. While Luzon and Visayas stores may both sell jeans, they may sell different brands, he said.

Millennials want a "curated" selection with not too many choices, he said.
"They want you to offer already the selection for them," he said.
The government’s tax reform program, which seeks lower personal income tax rates, may be good for retailers, he said.

"If they have more time, they have more time to shop. It’s good for us," he said.

METRO RETAIL Stores Group, Inc. (MRSGI) has temporarily closed one of its department stores in Cebu following a fire that lasted for more than 24 hours last week.

The listed company told the stock exchange on Monday that it has temporarily closed Metro Ayala Department Store and Supermarket in Cebu Business Park, after the building caught fire during the evening of Jan. 5. The Bureau of Fire Protection declared the fire under control early Sunday, Jan. 7.

No casualties or serious injuries were reported because of the incident.

MRSGI said it has yet to assess the department store and supermarket’s damage and impact on its financials because of the incident, but noted it expects to recover losses in the future. MRSGI has also started the recovery and rebuilding process from internally generated funds.

On the other hand, the company said this will not affect the operations of its existing malls.

“The incident will not hamper operations of MRSGI’s other 50 stores nationwide, as well as its existing relationships with suppliers and key stakeholders,” the company said.

"Upon exhaustive investigation conducted by the Office of the Investigation and Intelligence Division, BFP-National Headquarters, the cause of the subject fire incident has been declared and classified as ACCIDENTAL IN NATURE"